Costco delivered a solid QQ2 2025 with robust top-line growth and continued member strength, supported by a growing e-commerce and ancillary revenue base. Net sales reached $63.7 billion, up 9.1% year over year, driven by US comp sales up 8.3% (9.1% adjusted for gas deflation and FX) and strong international performance, notably Canada and select markets. E-commerce comp sales rose 20.9% (22.2% adjusted for FX), underscoring Costco’s growing online penetration and multi-channel capabilities. Total company gross margin expanded modestly to 10.85% (up 5 bps YoY, 4 bps ex gas deflation), while SG&A benefited from productivity gains and cost discipline, yielding SG&A as a share of revenue of 9.06% (down 8 bps YoY). Operating income rose 12.3% to $2.316 billion, with net income at $1.789 billion and diluted EPS of $4.02, representing a low-to-mid single-digit YoY growth excluding a prior-year discrete tax benefit. The company reaffirmed its long-run growth thesis: ongoing US and international footprint expansion (targeting ~25 net new warehouses in FY2025), stronger private-label penetration, digital enhancements (personalization and MVM optimization), and an expanding retail-media/alternative revenue framework to support member value. Management signaled FX headwinds and tariff uncertainty as key external risks, while maintaining a focus on value leadership—pricing actions to lower prices where opportunities exist and absorbing cost increases when feasible. The balance sheet remains strong with substantial liquidity, modest leverage, and ample free cash flow generation, supporting ongoing capex and shareholder returns aligned with Costco’s disciplined capital allocation framework.